Building Bridges: Music, Methods and Madness
Hmmm, I’ve been beavering away on my next column for the Globe and Mail. Sheesh, it wasn’t suppose to be this way; the ideas are just supposed to flow.
But I digress. And the article is on a touchy and touchy-feely topic, music, the music business and copyright.
Everybody loves a song and deep down fashions themselves a singer of at least something. At least I do. While the love and art of music may be alive and well, maybe even flourishing, by most lights the business side of things is, well, a bit of a trainwreck.
‘Record sales’, they say, are in a death spiral. Indeed, Google the phrase “death of music industry” and you get 14,600,000 hits. Based on ‘Google Hits’, the “death of music industry” mantra is about one third as popular as Lady Gaga, who clocked in today with 42,700,000 ‘Google Hits’ (GH, here on out).
Some of the big 4 major labels — Warner, EMI, Universal and Sony — have roots going back to the very early days of the 20th century, and to the mid-19th if we count bible publisher-come-music and media conglomerate Bertelsmann. Today they appear to be tearing themselves to pieces.
Bertelsmann ditched its half stake in Sony BMG in 2008, but kept its ‘music publishing rights’ line (a point whose significance will become apparent below). EMI is locked in a nasty turf war between scrubby private equity firm Terra Firma Capital (it appears it is anything but ‘firm soil’) and one of the planet’s big four bankers, the Citigroup (see here).
Music and money seems to be a constant theme here. Citigroup has also put the venerable Warner Music up for auction, after its former parent company, Time Warner, cast off the company in 2005. Universal remains part of Vivendi, the French industrial-media conglomerate that has its own fair share of trouble in many quarters (i.e. a lot of fraud convictions), if not so evidently in the music business.
Big global concert and merchandising promoters like Live Nation and AEG are having their own share of woes as well, it would seem. The concert and live entertainment/merchandising side of the industry has gone boffo, but the two biggest players have blown up their balance sheets through a wave of consolidation. If anyone ever wants to see what happens when the money guys and marketers get a full grip on culture, or music, than have a good luck at the last half dozen Annual Reports from Live Nation, for example. It’s a disaster.
Even Google seems unable to find a steady place amongst the turbulent waters that constitute the music industry.
All of which is to say that the evidence seems overwhelming that the music industry is in crisis. Umm, I’m not so sure, but I’ll leave the particulars to that for early next week in my Globe column.
Here, I want to focus on two other things that I think are helpful.
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